South Africa Improves World Digital Competitiveness Rankings 2025

Juliet Mashabela

The Institute for Management Development (IMD) has released the IMD World Digital Competitiveness Rankings (WDCR) for 2025, which evaluates the digital competitiveness of 69 global economies across three key factors: (i) Knowledge, (ii) Technology and (iii) Future Readiness.  This year, South Africa remained unchanged, ranking 58th in both 2025 and 2024.  All factors have declined in the recent IMD World Digital Competitiveness Rankings, reflecting global fragmentation affecting the digital competitiveness of firms, entire nations and regions

The knowledge factor assesses the “know-how necessary” to discover, understand, and build new technologies. South Africa declined in this factor, moving down from 54th in 2024 to 58^th in 2025. This factor has three sub-factors, namely: (i)Talent, (ii)Training &education and (iii)Scientific concentration. All sub-factors have realised a decline.  Under this factor, South Africa continues to rank high (2^nd) in Total expenditure on education, and female researchers rank high as well (14). This decline is visible in terms of higher education achievement, ranked 62nd. Furthermore, South Africa also performs badly on the Management of cities and digital/ technological skills, ranking in 67th position. 

The Technology factor observes the overall context that enables the development of digital technologies. South Africa’s ranking in this factor has declined to 57^th in 2025 from 54^th in 2024. The two sub-factors remained unchanged, which are the regulatory framework remaining at 62nd position and Capital remaining at 47^th position. The technological framework, sub-factor declined from 55^th in 2024 to 58^th in 2025.  It also recorded weaknesses, as starting a business ranks 62^nd and immigration laws rank 66^th. Although the Capital sub-factor remained constant, has recorded strengths; IT and Media stock capitalisation rank 7^th and investment in telecommunications ranks 6^th.

The future readiness factor, which assesses the level of a country’s preparedness to exploit digital rankings, recorded a decline in rankings. South Africa declined to 49^th in 2025 (from 50^th in 2024).  The factor has three sub-factors namely: (i) Adaptive attitude (ii) Business agility and (iii) IT integration. The two sub-factors have recorded an improvement in the 2025 digital rankings, which are Adaptive attitude and IT integration, while Business agility has recorded a decline in the 2025 World Digital Rankings

The 2025 edition of the World Digital Competitiveness Ranking (WDCR), compiled annually by the IMD World Competitiveness Center, found that trade and investment barriers – significant features of geopolitical fragmentation – are having implications on economies’ digital prowess, with repercussions for firms with operations there.

Switzerland (first), the US (second), and Singapore (third) are the frontrunners of the 69 nations assessed, primarily due to their infrastructure and talent. This is the ninth year that the WCC has produced its WDCR, tracking the ever-changing conditions of digital governance, economy, and society. It is the first year that Kenya, Namibia, and Oman have been measured.